CINA

Prime Minister Girija Prasad Koirala told reporters on Friday that India has agreed to release Nepalese Maoists currently in Indian jails and that India has no objection over the UN monitoring of arms during Constituent Assembly elections in Nepal.

"I am quite satisfied with the outcomes," Koirala told newsmen as he prepared to wind up his four-day-long India trip Friday. "I found them extremely concerned about the situation in Nepal. Everybody has extended their support for peace."

It was not immediately clear when India would release the 150-odd Nepalese Maoists jailed in different parts of India. They also include top leaders Mohan Baidya and C.P. Gajurel, who are jailed in Siliguri and Chennai, respectively.

Billions in financial package

Significantly, the southern neighbour has decided to extend direct budgetary assistance of Indian Rs 1 billion, increase its annual budget outlays for Nepal to Indian Rs 1.5 billion from the present Rs 650 million. Plus, it has decided to extend a soft loan assistance of US $ 100 million, officials said.

Military debts written off

New Delhi has also decided to write off debts worth I Rs 1.5 billion from Nepalese Defense Ministry, which has been receiving non-lethal and lethal military assistance from India since 1964. Besides doubling the quotas of scholarships to Nepalese students, it has also decided to defer the recovery of dues of about IRs 5 billion from Nepal Oil Corporation.

India positive on aviation concerns

After meeting Indian Civil Aviation Minister Praful Patel Friday morning, Finance Minister Ram Sharan Mahat said the talks were positive. According to him, the Indian side has positively responded to Nepalese demands that "unlimited seat quotas" be granted to Nepalese airlines operating in various Nepal-India sectors.

Hydropower, infrastructure development

The Indian side, according to officials, has also renewed its commitment to develop the infrastructure projects like the 1,500-km Hulaki Highway in the Terai region, Budhi Gandaki hydroelectricity project, the East-West Railways, a Polytechnic School in the Far-Western region. India had announced cooperation in the development of these projects during former premier Sher Bahadur Deuba's India visit in September 2004.

Advani calls on Koirala

Also on Friday, Opposition leader and Bharatiya Janata Party (BJP) veteran L.K. Advani called on PM Koirala at his hotel. Emerging out of the meeting, Advani told reporters -- echoing BJP chief Rajnath Singh who met Koirala on Thursday:  "Our view is that Nepal stands to gain a lot from Loktantra. We also support constitutional or ceremonial monarchy in Nepal."

Concerns over Maoists

Welcoming the ongoing peace negotiations between the popular parties and the rebel Communist Party of Nepal (Maoist) in Nepal, Advani said, "Maoists or Naxalites have created a huge crisis from Nepal to Andhra Pradesh [in South India]. Now you are holding talks in Nepal, that's no problem for us."

But he warned, "That should not in any way have any adverse negative affect on India's internal security."

Joint task force to assess mil assistance

At noon, Defense Minister Pranab Mukherjee called on Koirala at his Imperil Suit at Janpath. After the half-an-hour-long meeting, Mukherjee ruled out any possibility of immediate military assistance to the Nepalese Army but said, "a joint task force would assess the situation and any future decision would be made on the basis of its recommendations."

Nepal's Shiva Senas at Jantar Mantar

Also on Friday morning, a group of Shiva Sena Nepal activists held a demonstration at Delhi's Jantar Mantar protesting against last month's declaration of Secular -- and not Hindu -- Nepal. Holding placards and chanting pro-Hindu and anti-Koirala slogans they tried to march towards the Imperial Hotel, but the police stopped them.

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